Larry's latest.

Larry's latest this morning predicts a large drop in the price of equities to ramain liquid. This includes gold and silver. He reasons that the FED has refused to print, while European heads talk and do little else.

We get a different take from KWN. Michael Pento predicts that the ESM will come up with a rescue of  European bonds to the tune of E400-500B, while Jeffery Saut puts the size of the rescue fund at E2T. Pento believes that gold mining shares will fare better than gold itself.

In sum, the US exported its credit and housing crisis in 2008 to Europe and now Europe is exporting its sovereign debt crisis to us.

Meanwhile, economic slowdown has now spread to the emerging countries and their growth has been halved.

July should be an interesting month.